CROATIA – Infrastructure Failures Test Public Confidence
Croatian authorities are preparing to demolish Zagreb’s fire-damaged Vjesnik tower, with engineers recommending controlled explosions as the fastest and safest option. The decision has reopened criticism of chronic infrastructure mismanagement after heavy rains triggered new flooding across parts of Zagreb.
Storms have also disrupted maritime traffic along the Dalmatian coast, adding pressure on emergency services already stretched by repeated weather-related incidents.
Brussels has urged Croatia to rein in public spending ahead of the 2026 budget, signalling tighter fiscal scrutiny as investment needs rise.
MONTENEGRO – Integrity Questions Shadow Former Leadership
Montenegro’s anti-corruption agency said former president Milo Đukanović failed to declare a luxury watch collection valued at around €200,000, adding to long-standing claims of opaque wealth accumulation among senior officials.
NGOs welcomed parliament’s election of a new Constitutional Court judge but warned the court remains understaffed and unable to fully address a backlog of politically sensitive cases, prolonging uncertainty around key reform legislation.
BOSNIA AND HERZEGOVINA – Competing Narratives Over Statehood
Bosnia marked Statehood Day with sharply contrasting messages: Sarajevo officials reaffirmed opposition to any territorial division, while leaders in Republika Srpska played down the holiday’s significance.
A U.S. congressional delegation met defence officials in Sarajevo, signalling continued Western support for strengthening state institutions amid persistent secessionist rhetoric from the RS leadership.
Political analysts note that fragmented public messaging risks further entrenching ethnic divides as the country enters a heavy election cycle in 2026.
A bomb threat forced the evacuation of a hotel in Banja Luka during an SDP BiH meeting, the latest in a series of security warnings across Bosnia and northern Serbia.
Banja Luka Mayor Draško Stanivuković alleged he was threatened by an associate of SNSD figure Vlado Đajić, underscoring the hostile political climate surrounding next year’s local elections.
SLOVENIA – Regulatory Pushback on Regional Financial Expansion
Slovenia’s financial regulator rejected Croatia’s Fina bid to acquire the Ljubljana Stock Exchange, citing unresolved legal issues. The decision highlights growing regulatory sensitivity to cross-border ownership in strategic financial infrastructure at a time of rising M&A interest across the Western Balkans.
REGIONAL ECONOMICS – Weak Retail Bond Uptake Exposes Limits of Financial Inclusion
Montenegro’s poor public response to its retail government bonds has stirred debate over whether small-investor products are viable in low-trust, low-liquidity Balkan markets.
Reports that North Macedonia is preparing a third round of “citizens’ bonds” suggest governments remain committed to the model, though analysts caution that limited household savings and weak financial literacy could hinder its expansion.
CROSS-BORDER POLITICS – Tensions Over Ukraine Policy Spill Into the Region
Croatian President Zoran Milanović criticised Western pressure on Ukraine to reject a potential peace framework under U.S. President Donald Trump, calling it “diabolical.” The remarks reflect growing unease among some Balkan leaders over shifting U.S.–Russia dynamics, with potential ramifications for regional alignments and security calculations.